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"Notice each homeowner mistake Or they cause great heartache So get this information It'll keep you from a bad situation
And a better homeowner you'll make.
We all make mistakes. After all, we're only human. But when you make a mistake with something as expensive and permanent as your home the results can be a little uncomfortable at best and devastating at worst. Being a real estate investor, homeowner and former real estate agent, I've seen and made many mistakes and I've found these 8 mistakes happening over and over with many Black homeowners. With hard work, sacrifice and a little pain, some of these mistakes are repairable and others may require you to start over again from scratch. And depending on your age and constitution it may be a greater challenge to do over again - than when you were younger and more energetic. So read and examine these 8 biggest mistakes Black homeowners make. If you're a young homeowner, you can use them as warning signs to help you avoid the potholes of homeownership. And if you're a seasoned homeowner, you can use them as reminders to keep you on the right homeownership track. 1. Financing with Predatory Lenders Despite laws designed to stop predatory lending practices, they still survive off the backs and wallets of uninformed homeowners. The key is to educate yourself before you seek financing. Watch Video Warning!
Don't totally depend on the lender to inform you of the lowest rates, fees and points. Better yet, seek help from a third party mortgage counseling organization. For example, your city housing department, non-profit organizations such as Consumer Credit Counseling or your local HUD office (U.S Housing and Urban Development).
2. Not Shopping Around Remember the old Smokey Robinson song classic? The story tells of a concerned mother telling her son not to settle for the first pretty face he sees. But, to be sure of making the best choice -he should "Shop Around" first. This is good advice when it comes to finding the best financing too. Just because a lender offers you a loan doesn't mean you can't find a better one - with a little extra research. Make lenders compete for your business by at least comparison shopping first. Check BankRate.com, LendingTree.comand other similar comparison sites to educate yourself first.
3. Getting Buried In Credit Card Debt After Buying A Home
Many homeowners make the big mistake of letting credit card debt run out of control. This domino affect can financially cripple the most confident borrower - quickly . Credit card debt is often at the root of most home foreclosures. Show me a home foreclosure and I'll show you over extended credit cards lingering close by. A good rule to stay on top of the credit card temptation is to apply the 30-day rule. The rule is "If I can't pay this item off in 30 days - I can't afford it.
4. Abandoning Good Money Management After Buying Your Home
Many first time homeowners make this mistake. Abandoning the good money management habits that placed them in the position to buy the home in the first place. Now that they have the home, they're tempted to splurge on home improvements, decorating, charging and spending. And doing it with less regard for a spending plan or budget. One financial hiccup or emergency can put them in quick financial danger. Avoid this by sticking rigorously to a spending plan.
5. Waiting Too Long To Seek Help, Advice Or Information For A Problem
This is one of the biggest mistakes Black homeowners make. Whether it's because of concerns of saving money, embarrassment or hoping the problem will solve itself. Many Black homeowners seek help too late to solve many problems, especially loan defaults. This often leads to foreclosure of their homes. Many times they could have worked out a deal with the lender. Also, many free and low costs financial counseling services exist that can help. For example, Consumer Credit Counseling, HUD and the National Urban League to name a few.
6. Settling For A Good Price In The Place Of The Best Price
According to a current Consumer Profile study. African Americans rate last in comparison-shopping. African Americans rated most likely to settle for the first price they encounter. This comes out of a lack of information. Research has long revealed comparison-shopping is the best and often the only sure-way of paying the lowest price. Taking the time to comparison shop at least 3 estimates - can save you 10%-50% more than if you take the first price given.
7. Thinking The Cheapest Price Is Always The Best Deal
Another big mistake many Black homeowners make. Always looking for the cheapest price. It's nothing wrong with looking for the cheapest price. So, what's the mistake? Picking the cheapest price as your top priority. Especially for a product or service that requires a special skill or a product that serves an important function. Remember cheapest can turn into the most expensive if you have to have the work done over. Cheap prices should always be balanced with quality and value.
8. Failing To Do The Homework Or Checking And Investigation For Yourself
Another costly mistake Black homeowners make is depending on the person selling the goods or services to display total honesty (Full disclosure). This can lead to many disappointments, frustration and wasted money. That's why it's always best to at least check whether the person or company that's coming into your home has any complaints, lawsuits or bad reports. Especially, if you're having a major home improvement or renovation done. At a minimum, you should do a Better Business Bureau check. You should also ask for references of previous work done (and call the former customers) and check their contractor's license. In addition, you should make sure they're insured. If not, you're responsible if they're hurt on your property. Did you know that? If you fail to do these checks, you're asking for trouble. It's like playing Russian roulette with your home and money. Take the extra time and effort to perform these simple actions. You'll save yourself from the stress of many homeowners and Black homeowners in particular. Homeowners who shady and negligent home improvement contractors and lenders prey on each day. These suggestions will help to keep you from falling victim to their
deceptive practices.
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